Law

The Federal Trade Commission, adopting a simpler regulatory policy, recently issued a final rule to combat fraudulent and abusive practices by telemarketers

Article Abstract:

The final Telemarketing Sales Rule issued by the Federal Trade Commission on August 14, 1995, differs in many important ways from the original rule proposed in February, reflecting extensive industry comment. As the Telemarketing Act enacted on August 16, 1994, required, the Rule sought to prohibit deceptive and abusive telemarketing practices, and to set record-keeping requirements. Initially the FTC read this mandate expansively, but industry reaction prompted a narrower interpretation more in line with Congress' intent.

Junk phone laws spur commercial speech suits: telemarketers and small business owners say federal and state bans on automatic dialing are unconstitutional

Article Abstract:

A variety of lawsuits in state and federal courts attack the 1992 federal Telephone Consumer Protection Act or similar state acts on constitutional grounds. The acts prohibit commercial use of automated equipment to make telephone solicitations, in effect discriminating on the basis of content of the communication, say plaintiffs. The US Supreme Court may soon hear a case arguing the act violates 1st Amendment and 5th Amendment rights.

In recent months several class actions have been filed against sweepstakes promoters alleging fraud, but the suits may encounter certification problems

Article Abstract:

Consumer lawsuits have been filed against various sweepstakes promoters with such causes of action as fraud, misrepresentation and violations of various state consumer protection laws on the basis of statements in direct- mailings of promotional materials. The Florida attorney general has also sued American Family Publishers for unlawful game promotion and deceptive trade practices. Various cases are detailed.